The concern is that if anyone holding lots of dollars finally gets fed up with our government’s debasing of the currency, they will start dumping their dollars for whatever they can get their hands on, creating a mad flight away from the currency, and the next morning, our dollars will be worthless.
“Remember how the Chinese laughed at Geithner when he said their American investments were safe?
The laughter was not just the opinion of those sitting in the audience listening to Geithner’s speech.
One of China’s official newspapers, The Global Times, reports that an online poll of Chinese citizens found that 87 percent of respondents believe China’s dollar-assets are unsafe.
The paper concluded, ‘Ordinary Chinese people are discontent with the declining value of China’s huge foreign exchange reserves denominated in U.S. dollars.'” (from washingtonblog.com)